The bar had been operating for 19 years on Lewers Street but was forced out to make way for Outrigger Hotels and Resort's $800 million Waikiki Beachwalk-Lewers Street redevelopment project.

A lower court ruled that the Honolulu Liquor Commission failed to follow voting protocol in May 2005 when it rejected a liquor license for E & J.

In her February 2006 decision, Circuit Judge Eden Elizabeth Hifo said the commission should rehear the case because it had not held a contested hearing as required.

The high court overturned her decision, ruling that the commission was not required to hold a contested hearing, that a public hearing was enough.

William Comerford, one of the partners of E & J Lounge, which runs Kelley O'Neil's in Waikiki and O'Toole's Irish Pub downtown, said he wanted to review the Supreme Court's decision before making a comment.

Comerford also did not say whether he would try to move the bar to the Island Colony. The Irish Rose reopened in March at 478 Ena Road in Waikiki.